Against the backdrop of a challenging operating environment, the top priorities for air cargo should be sustainability, digitalization and safety.
The International Air Transport Association (IATA) highlighted this at the 16th World Cargo Symposium which opened in Istanbul, Turkiye yesterday, April 25.
“Air cargo is a different industry than the one that entered the pandemic," says Brendan Sullivan, IATA’s Global Head of Cargo.
"Revenues are greater than they were pre-pandemic. Yields are higher. The world learned how critical supply chains are. And the contribution of air cargo to the bottom line of airlines is more evident than ever," he maintained.
"Yet, we are still linked to the business cycle and global events," according to Sullivan.
Hence, the war in Ukraine, uncertainty over where critical economic factors like interest rates, exchange rates and jobs growth are concerns that are real to the industry today.
"As we navigate the current situation, air cargo’s priorities have not changed, we need to continue to focus on sustainability, digitalization, and safety,” he underscored.
Sustainability is a critical priority and the aviation industry’s license to do business.
Last October, governments agreed to the Long-Term Aspirational Goal (LTAG) of net zero carbon emissions by 2050, in line with the industry’s commitment adopted in 2021.
Sustainable Aviation Fuel (SAF) is critical to achieving this goal, 65 percent of carbon abatement will come from SAF, however, production levels remain challenging. IATA called for government incentives for production.
“SAF is being produced. And every single drop is being used. The problem is that the quantities are small. The solution is government policy incentives," Sull8van explained.
Through incentivizing production, 30 billion liters of SAF available by 2030.
"That will still be far from where we need to be. But it would be a clear tipping point towards our net zero ambition of ample SAF quantities at affordable prices,” he noted.
The second priority is digitalization, replacing the many data standards used for transport documents with a single record for every shipment, or ONE Record by January 2026. Digital standards should also be in place to support the global supply chain. Guidance has been finalized on tracking devices – the IATA Interactive Cargo guidelines - used to monitor the quality and accuracy of conditions of time and temperature sensitive goods being shipped across the world. Customs, trade facilitation and other government processes should be digitalized. Digitalization plays an important role in evolving strategies for trade facilitation, reducing operational barriers at borders and managing the flows of goods securely.
“Alongside sustainability and efficiency is safety," Sullivan noted. "The agenda for air cargo continues to be dominated by lithium batteries. A lot has been done. But, quite honestly, it is still not enough.” IATA outlined three safety priorities for air cargo. The first is topping rogue shippers. Civil aviation authorities must take strong action against shippers not declaring lithium batteries in cargo or mail shipments. Second is fast-tracking , the development of a test standard for fire-resistant aircraft containers with a fire involving lithium batteries Third is ensuring recognition from governments of the single standard to identify all lithium battery powered vehicles which comes into effect from January 1, 2025.